iDeCo expanded in December 2026: higher contribution ceilings and contributions allowed until age 70iDeCo, the pension you build yourself, gets easier to use from December
On October 20, 2026 (Reiwa 8), the Ministry of Health, Labour and Welfare published a column in its web magazine "Kosei Rodo" setting out, in three points, the reform of iDeCo (the individual-type defined contribution pension plan) that takes effect in December 2026. The monthly contribution ceiling is raised: for Category 1 insured persons it goes from JPY 68,000 to JPY 75,000 a month, and for Category 2 insured persons it is unified at JPY 62,000 a month. In addition, people will be able to join and contribute until they reach age 70. The tax treatment under which contributions are fully deductible from income does not change.
Key points
- The reform takes effect in December 2026. The column was posted on October 20, 2026
- For Category 1 insured persons (the self-employed, freelancers and similar), the monthly contribution ceiling rises from JPY 68,000 to JPY 75,000
- For Category 2 insured persons (company employees and public servants) the ceiling is unified at JPY 62,000 a month, removing the differences based on whether the employer has a corporate pension. For an employee with no corporate pension, the ceiling rises from JPY 23,000 to JPY 62,000 a month
- Even after a person ceases to be insured under the National Pension, they may join and contribute until age 70 if certain conditions are met. The conditions include not yet receiving the Basic Old-Age Pension or iDeCo old-age benefits, and not making matching contributions
- The three tax advantages remain available after the reform: contributions are fully deductible from income, investment gains are tax-free, and benefits received are covered by the public pension deduction or the retirement income deduction
What to do in practice
- Because higher ceilings may increase employees' contributions, check in advance how certificates will be collected and entered for the deduction for small-scale enterprise mutual aid premiums at the year-end adjustment
- Companies with a corporate-type defined contribution plan should confirm with the issuing agency how the ceiling applies to employees who combine it with iDeCo
- Companies with employees working past age 60 can use the extension of contributions up to age 70 as material for internal notices
iDeCo is a system where you put money aside every month yourself and receive it as a pension when you are older. It works like savings that you add on top of the public pension, and the money you set aside is subtracted when your tax is worked out. From December 2026, the monthly limit on how much you can set aside goes up, and you will be able to keep paying in until you turn 70. The Ministry of Health, Labour and Welfare explained the changes in three points on October 20, 2026.
Points
- From December 2026, the monthly limit on how much you can set aside goes up
- For people working at a company the limit is lined up at JPY 62,000 a month, so it no longer matters whether the company has its own pension
- You will be able to keep paying in until you turn 70 (people already receiving a pension and some others are not covered)
What the words mean
- iDeCo
- A system where you set money aside yourself and receive it as a pension when you are older
- income deduction
- Money subtracted from your income when tax is worked out. The more that is subtracted, the lighter the tax
- Ministry of Health, Labour and Welfare (MHLW): MHLW web magazine "Kosei Rodo", column "iDeCo gets an upgrade from December 2026: three points of the reform" (October 20, 2026)
- Ministry of Health, Labour and Welfare (MHLW): MHLW web magazine "Kosei Rodo"
This article previews changes that have already been decided and will take effect in the future. Effective dates and details can change, so please check the official source shortly before the date.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.